The goal is clear. „Our top mission is relatively straightforward“, says Ingo Ramesohl, one of the two managing directors of Robert Bosch Venture Capital GmbH. „We achieve this through two levers“, he explains in an interview with Börsen-Zeitung. Firstly, Bosch acquires stakes of 5% to 25% in startups. Secondly, the company collaborates with young enterprises through the „Open Bosch“ venture client department.

Venture managers from all of Bosch's business divisions worldwide become active whenever a business unit within the conglomerate encounters a challenge. „We then assess whether a collaboration with a startup could be beneficial and facilitate a partnership as straightforwardly as possible“, Ramesohl reports. „We almost always find a suitable startup somewhere in the world.“ Bosch boasts a vast database.

An example of such a technology partnership is Sun Mobility, a startup in India offering a battery swap system for electromobility. Another example is Atlatec, a Karlsruhe-based company specializing in high-resolution digital maps for driver assistance and automated driving. The collaboration began in 2019, and three years later, Bosch acquired the partner. However, acquisitions are not the norm.

Bosch Ventures reviews 2,000 to 3,000 companies annually, with investments made in five to ten, Ramesohl notes. Currently, they manage over 70 companies in their portfolio, where Bosch holds seats on most of their boards. Additionally, there are several hundred joint projects with startups. „Each year, we add about 30 to 50 permanent collaborations“, Ramesohl says. Terminations are rare.

Thanks to these partnerships, Bosch can quickly benefit from the ideas of young firms. „Through these collaborations, we can assist startups early with their roadmaps, enabling their products to be ready for Bosch in a relatively short time. This is a huge gain for both sides, and Bosch's partnership with startups also has a positive signaling effect“, Ramesohl emphasises. He adds a welcome side effect: „Thanks to our investments and collaborations, we stay informed about global startup industry developments, and are not surprised by new competitors.“

These startups sometimes also supply competitors of Bosch: „We actually encourage companies to be successful and have other customers. No company can be happy with just one customer. Through our engagement, Bosch can leverage the benefits of collaboration more swiftly and robustly.“ However, Bosch does not demand preemptive rights, as this could diminish a company's value.

Bosch Ventures has been in operation since 2007. Currently, investments are financed from the fifth internal fund, endowed with 250 million euros. Including the four previous funds, albeit with slightly smaller volumes, their total investment surpasses 1 billion euros. „We have fully sold off investments from Fund 1 with a respectable return“, Ramesohl reports. „Our returns place us in the top quartile of institutional investors in Europe.“ Nonetheless, he declines to specify the exact yield. In addition to Bosch's funded funds, there is Boyuan Capital in China, which also gathers external capital – even from other industrial companies.

„In Europe, we are among the largest industrial investors because we've been doing this for a long time“, Ramesohl states. „The more successful we are in this business, the more visible we become, and the better our deal flow.“ New engagements often come through other investors. Networking is crucial in this „people business“, and Bosch maintains contacts with all major investors globally in the sector. Moreover, more startups are approaching Bosch directly.

The global network comprises seven offices: two in the US, two in Shanghai, two in Germany for Europe, and a small office in Tel Aviv. Start-up conferences are venues where connections can be established quickly and relatively easily.

Ramesohl estimates the holding period for investments at eight to ten years. „Generally, we invest in companies with products and services that can be scaled within three to five years“, he explains. As an example of successful exits, the managing director cites Ion Q, a US-based company developing and marketing quantum computers listed on the Nasdaq in New York. Similarly, Finnish medical technology company Optomed went public on the Nasdaq in Helsinki, and the semiconductor company Movidius was sold to Intel.